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UPDATE: Macquarie Upgrades ANN

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In a note released Friday, Macquarie upgraded ANN (NYSE: ANN) from Neutral to Outperform and raised the price target to $53.

In describing the reasoning behind this upgrade Macqaurie analyst Liz Dunn provided a list Including:

  • On March 20th, Golden Gate Capital Public Equity Opportunities announced a 9.5 percent stake in Ann Inc.
  • ANN has persistently traded at a discount to our coverage universe.
  • ANN just announced a strategic restructuring that is expected to save $25 million per year.
  • We believe activist shareholders could encourage the company to take on debt to fund a sizable buyback, and ANN's steady free cash flow could support the addition of one turn of leverage.
  • We also believe the company could be encouraged to pursue a sale to a strategic acquirer.
  • Guidance for 1Q and FY14 are appropriately conservative.

In the pre-market session, ANN was trading up a little under two percent.

Latest Ratings for ANN

DateFirmActionFromTo
Feb 2015MacquarieDowngradesOutperformNeutral
Oct 2014MacquarieMaintainsOutperform
Oct 2014BarclaysInitiates Coverage onEqual-weight

View More Analyst Ratings for ANN
View the Latest Analyst Ratings

Posted-In: MacquarieAnalyst Color News Upgrades Price Target Analyst Ratings

 

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